Chevron Blacklisted by Iraq for Kurdistan Deals image

Iraq blacklisted Chevron Corp and banned any oil deals with the oil ministry after the US company bought stakes in two blocks in Iraq’s Kurdistan.

“In line with Oil Ministry policy based on the constitution, the Oil Ministry announces the disqualification of Chevron company and bars it from signing any deals with the federal Oil Ministry and its companies,” the statement said.

Last week Chevron confirmed it has purchased 80% of two blocks in Iraq’s Kurdistan, trying to get ahead its competitor Exxon Mobil Corp in an area where oil rights are a subject of fierce dispute. The company bought from India’s Reliance Industries Ltd shares in Sarta and Rovi blocks, which it will own together with Austria’s OMV AG, holder of the rest of 20%.

Baghdad and Kurdistan have a long-running dispute over land, oil and sharing revenues, and Iraq’s capital claims that it has the sole authority to sign deals and manage oil fields in the north.

“The reputation and credibility of Chevron and other companies are being tested today and we are fully confident the result of its test is a total failure and it should feel ashamed of its action,” the statement said.